Bitcoin prices have shown some recovery after plummeting to $102,000, prompting speculation about where the pioneering cryptocurrency will go next. So far, the picture has been mixed, with some predicting a continuation of the rally similar to the coronavirus bull market, while others believe this is the beginning of a bear market. Similarly, one pseudonymous cryptocurrency analyst has a clear picture of where Bitcoin price will go depending on how it performs in relation to the midpoint level.
What happens if Bitcoin price moves past the midpoint?
The median line is currently important to Bitcoin price performance. This is because it is firmly positioned between the major support and resistance levels seen over the past few weeks. This brings the midpoint to approximately $111,994, the next decisive point for the cryptocurrency.
Related books
As the crypto analyst explains, if Bitcoin price can sustain above the midpoint, the next major resistance it needs to break is at the 0.75 Fibonacci level. This corresponds to the $117,605 price level, which is the point where the bears are likely to mount the most resistance, especially considering the fact that this trend is bearish on lower time frames.
Nevertheless, a break above this midpoint means the trend remains bullish and favorable for buyers. Therefore, it could confirm the uptrend and lead to a move towards the next new high. “After such a sharp decline, a V-shaped recovery and a jump to highs would be the biggest pain,” the analyst said.
Bears still have a chance to regain control
Bitcoin price above the midpoint is still a bullish trend, but if the price falls below this level, the bearish impact becomes even more significant. Analysts note that losing the intermediate level means Bitcoin price could backfill to the core again.
Related books
This wick refers to the flash crash wick that was established last Friday when Bitcoin price fell to $102,000. Even though Bitcoin is above $110,000, the market continues to struggle to recover from the previous crash. break A move closer to $102,000 could be catastrophic for the altcoin.
Supporting the bearish theory, another cryptocurrency analyst also pointed out that Bitcoin prices are showing signs of diversification. This could cause Bitcoin to form a reversal pattern and continue its downward price trend. From here, analysts expect the price to eventually fall below $100,000 before finding support.
Featured image created by Dall.E, chart on Tradingview.com
